Title: Economic Dynamics and Challenges of Motorcycle (Bodaboda) Entrepreneurs in Developing Countries: A Case Study of Iringa Municipal, Tanzania.
Authors: Yohana Tweve
Volume: 8
Issue: 9
Pages: 102-119
Publication Date: 2024/09/28
Abstract:
This study explored the economic dynamics and challenges faced by motorcycle (bodaboda) entrepreneurs in Iringa Municipal, Tanzania, aiming to understand their contributions to the local economy and the significant obstacles they encountered. Using a mixed methods approach, the research gathered data from 150 bodaboda operators and key stakeholders through surveys and interviews. The findings showed that bodaboda operations are crucial for livelihoods, with 73% of operators relying on their income as their primary source of sustenance, significantly contributing to household finances in a region with limited formal employment opportunities. Additionally, bodaboda entrepreneurs contributed to employment creation by employing others either full-time or part-time. However, the study revealed several challenges hindering the growth and sustainability of the bodaboda sector. Operators faced high competition, inadequate training, and significant regulatory compliance issues, with only 27% fully compliant with insurance requirements and 23% with licensing. The poor state of infrastructure and disorganized traffic systems deteriorated these difficulties, leading to frequent accidents and unsafe working conditions. Moreover, limited access to essential services, such as healthcare, education, and financial services, further weakened the economic potential of bodaboda entrepreneurs. While bodaboda operations are vital to local economic development, the challenges they face require targeted interventions. The study recommended implementing training programs, regulatory reforms, infrastructure improvements, and support for better working conditions to enhance the sustainability and safety of the bodaboda sector, enabling operators to maximize their economic contributions while minimizing associated risks.